To Our Valued Customers:

 

Market Conditions - Capacity remains extremely tight into Southern California ports with roll overs and new booking confirmations being pushed out until the first week of July as first available sailings. South China and S. Asia ports are experiencing more difficulties with capacity versus other China ports and we expect this to continue through at least mid-July. Extra loader vessels are easing the backlog of containers in ports in Southern China, especially the port of Yantian which was hard hit by rollovers in the past few weeks.

 

Market Rates - For the first time in approximately 18 months ocean carriers were successful on implementing two substantial rate increases within one month. The June 1st general rate increase of $600 per 40’ container was implemented primarily on cargo discharging US & Canada West Coast ports and discretionary cargo. The June 15th general rate increase went through on all sub-trades in USA & Canada for an additional $600 per 40’. We expect market rates to decrease somewhat through the remainder of the month however remain well above levels back in early May.

 

Fixed Rate vs. Market Rate GAP Continues to Widen - Due to the recent back to back market rate increases fixed rate capacity is well oversubscribed as ocean carriers provide below minimum volume allocations due to capacity limitations from blank sailings. For example, if an ocean carrier was expecting on providing 50 x 40’ capacity on a specific service lane such as Shanghai to Los Angeles and blank sailings reduced the carrier’s available capacity by 30%-40% in a given week the fixed allocation is also reduced by the same quantum. To further aggravate the situation historically ocean carriers will restrict fixed rate capacity when market rates are favorable.

 

July 1st Peak Season Surcharge Looks Likely  Ocean carriers look to close gap between fixed and market rates by implementing a peak season surcharge effective July 1st. Discussions with ocean carriers on the surcharge have been sporadic and no set number by carriers formally announced outside of tariff filings which are between $600-$1000 per 40’ container.

 

Blank Sailings to Extra Loaders - THE Alliance announced many blank sailings for the last week of June and July, however, did a quick about face this week by adding seven extra loaders over three lanes through Mid-July (see blank sailings below for details). OCEAN Alliance also announced a PNW extra loader during the first week of July and extended the GME service calling Long Beach, CA prior to heading to the Gulf Ports. This is a great example of the “new normal” where ocean carriers alliances have the scale and flexibility to quickly balance supply with demand.

 

Please reach out to your local sales representative for further details on the Peak Season Surcharge & service solutions for urgent PPE, speed to market shipments. The extra loader details are included below for reference:

 

Transpacific – West Coast

Week of June 28th

THE Alliance - Colombo, Port Kelang, Singapore, Cai Mep, Haiphong // Los Angeles, Oakland
THE Alliance - Shanghai, Ningbo // Los Angeles (Extra Loader, ETD Shanghai 6/27)
THE Alliance – Xiamen, Yantian, Kaohsiung, Keelung // Los Angeles, Oakland (Extra Loader, ETD XXM 6/27) THE Alliance - Hong Kong, Yantian, Shanghai, Busan // Vancouver, Seattle
THE Alliance - Qingdao, Ningbo, Shanghai, Busan // Prince Rupert, Tacoma, Vancouver
OCEAN - Hong Kong, Yantian, Shanghai // Prince Rupert, Vancouver (Extra Loader, ETD Shanghai 7/4) OCEAN - Yantian, Shanghai, Ningbo // Prince Rupert, Vancouver

Week of July 5th

THE Alliance - Xiamen, Yantian, Kaohsiung, Keelung // Los Angeles, Oakland
THE Alliance - Shanghai, Ningbo // Los Angeles (Extra Loader, ETD Shanghai 7/4)
OCEAN - Fuqing, Nansha, Hong Kong, Yantian, Xiamen, Shanghai // Los Angeles, Oakland

Week of July 12th

THE Alliance - Colombo, Port Kelang, Singapore, Cai Mep, Haiphong // Los Angeles, Oakland
THE Alliance - Shanghai, Ningbo // Los Angeles (Extra Loader, ETD Shanghai 7/11)
THE Alliance – Xiamen, Yantian, Kaohsiung, Keelung // Los Angeles, Oakland (Extra Loader, ETD XXM 6/27) THE Alliance - Hong Kong, Yantian, Shanghai, Busan // Vancouver, Seattle
THE Alliance - Qingdao, Ningbo, Shanghai, Busan // Prince Rupert, Tacoma, Vancouver

Week of July 19th

THE Alliance - Xiamen, Yantian, Kaohsiung, Keelung // Los Angeles, Oakland THE Alliance - Shanghai, Ningbo // Los Angeles

Week of July 26th

THE Alliance - Colombo, Port Kelang, Singapore, Cai Mep, Haiphong // Los Angeles, Oakland
THE Alliance - Shanghai, Ningbo // Los Angeles
THE Alliance – Xiamen, Yantian, Kaohsiung, Keelung // Los Angeles, Oakland (Extra Loader, ETD XXM 7/25) THE Alliance - Hong Kong, Yantian, Shanghai, Busan // Vancouver, Seattle
THE Alliance - Qingdao, Ningbo, Shanghai, Busan // Prince Rupert, Tacoma, Vancouver

 

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THE Alliance: Yangming, ONE, Hapag Lloyd, HMM

Ocean Alliance: COSCO, OOCL, CMA, Evergreen, APL 

2M: Maersk, MSC

 

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